WIPRO LTD-ADR (WIT)
US97651M1099 - ADR
Overall WIT gets a fundamental rating of 6 out of 10. We evaluated WIT against 83 industry peers in the IT Services industry. While WIT has a great health rating, its profitability is only average at the moment. WIT is valued quite cheap, but it does not seem to be growing. These ratings would make WIT suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year WIT was profitable.
In the past year WIT had a positive cash flow from operations.
In the past 5 years WIT has always been profitable.
Each year in the past 5 years WIT had a positive operating cash flow.
1.2 Ratios
WIT has a Return On Assets of 9.32%. This is amongst the best in the industry. WIT outperforms 81.48% of its industry peers.
With a decent Return On Equity value of 14.35%, WIT is doing good in the industry, outperforming 76.54% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.17%, WIT is doing good in the industry, outperforming 76.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WIT is in line with the industry average of 9.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 14.35% | ||
| ROIC | 10.17% |
ROA(3y)10.19%
ROA(5y)11.09%
ROE(3y)15.94%
ROE(5y)16.96%
ROIC(3y)11.05%
ROIC(5y)11.82%
1.3 Margins
Looking at the Profit Margin, with a value of 13.24%, WIT belongs to the top of the industry, outperforming 90.12% of the companies in the same industry.
In the last couple of years the Profit Margin of WIT has declined.
WIT has a better Operating Margin (16.28%) than 90.12% of its industry peers.
In the last couple of years the Operating Margin of WIT has remained more or less at the same level.
With a Gross Margin value of 30.15%, WIT is not doing good in the industry: 60.49% of the companies in the same industry are doing better.
WIT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.28% | ||
| PM (TTM) | 13.24% | ||
| GM | 30.15% |
OM growth 3Y-8.03%
OM growth 5Y-1.33%
PM growth 3Y-10.95%
PM growth 5Y-4.35%
GM growth 3Y-2.19%
GM growth 5Y-0.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WIT is destroying value.
Compared to 1 year ago, WIT has less shares outstanding
WIT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WIT has been reduced compared to a year ago.
2.2 Solvency
WIT has an Altman-Z score of 4.60. This indicates that WIT is financially healthy and has little risk of bankruptcy at the moment.
WIT's Altman-Z score of 4.60 is fine compared to the rest of the industry. WIT outperforms 66.67% of its industry peers.
The Debt to FCF ratio of WIT is 1.13, which is an excellent value as it means it would take WIT, only 1.13 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.13, WIT is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
WIT has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
WIT's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. WIT outperforms 61.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 4.6 |
ROIC/WACC0.83
WACC12.25%
2.3 Liquidity
WIT has a Current Ratio of 2.69. This indicates that WIT is financially healthy and has no problem in meeting its short term obligations.
WIT's Current ratio of 2.69 is fine compared to the rest of the industry. WIT outperforms 77.78% of its industry peers.
A Quick Ratio of 2.68 indicates that WIT has no problem at all paying its short term obligations.
WIT has a Quick ratio of 2.68. This is in the better half of the industry: WIT outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 2.68 |
3. Growth
3.1 Past
WIT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.20%.
Measured over the past 5 years, WIT shows a small growth in Earnings Per Share. The EPS has been growing by 6.73% on average per year.
The Revenue has decreased by -3.36% in the past year.
WIT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.91% yearly.
EPS 1Y (TTM)5.2%
EPS 3Y2.82%
EPS 5Y6.73%
EPS Q2Q%21.53%
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y13.16%
Revenue growth 5Y8.91%
Sales Q2Q%-0.95%
3.2 Future
The Earnings Per Share is expected to decrease by -1.04% on average over the next years.
The Revenue is expected to grow by 5.96% on average over the next years.
EPS Next Y16.28%
EPS Next 2Y12.14%
EPS Next 3Y-11.52%
EPS Next 5Y-1.04%
Revenue Next Year-0.59%
Revenue Next 2Y2.79%
Revenue Next 3Y4.3%
Revenue Next 5Y5.96%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.29, which indicates a correct valuation of WIT.
WIT's Price/Earnings ratio is rather cheap when compared to the industry. WIT is cheaper than 83.95% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.77. WIT is valued rather cheaply when compared to this.
WIT is valuated correctly with a Price/Forward Earnings ratio of 12.08.
88.89% of the companies in the same industry are more expensive than WIT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of WIT to the average of the S&P500 Index (23.38), we can say WIT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 12.08 |
4.2 Price Multiples
WIT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WIT is cheaper than 90.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WIT is valued cheaply inside the industry as 91.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.62 | ||
| EV/EBITDA | 4.57 |
4.3 Compensation for Growth
WIT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of WIT may justify a higher PE ratio.
WIT's earnings are expected to decrease with -11.52% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.88
PEG (5Y)2.12
EPS Next 2Y12.14%
EPS Next 3Y-11.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.16%, WIT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.70, WIT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.24, WIT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
5.2 History
The dividend of WIT has a limited annual growth rate of 1.51%.
WIT has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WIT pays out 4.44% of its income as dividend. This is a sustainable payout ratio.
DP4.44%
EPS Next 2Y12.14%
EPS Next 3Y-11.52%
WIPRO LTD-ADR
NYSE:WIT (12/18/2024, 12:06:02 PM)
3.715
+0.01 (+0.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.41B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 12.08 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.88
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 14.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.28% | ||
| PM (TTM) | 13.24% | ||
| GM | 30.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.69 | ||
| Quick Ratio | 2.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5.2%
EPS 3Y2.82%
EPS 5Y
EPS Q2Q%
EPS Next Y16.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y13.16%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y